Investor Presentation December 2018

Disclaimer

Forward-Looking Statements

This presentation contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or

current conditions included in this presentation are forward-looking statements. Forward-looking statements give our current expectations and projections relating to our financial

condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or

current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “seek,” “plan,” “intend,” “believe,” “will,” “may,” “could,” “continue,” “likely,” “should,”

and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events, but not all forward-

looking statements contain these identifying words.

The forward-looking statements contained in this presentation are based on assumptions that we have made in light of our industry experience and our perceptions of historical trends,

current conditions, expected future developments and other factors that we believe are appropriate under the circumstances. As you consider this presentation, you should understand

that these statements are not guarantees of performance or results. These assumptions and our future performance or results involve risks and uncertainties (many of which are beyond

our control).

These risks and uncertainties include but are not limited to: uncertainties in the financial markets, consumer and small business spending patterns and debt levels; our dependence on

having a large and loyal membership; domestic and international economic conditions, including exchange rates; our ability to procure the merchandise we sell at the best possible

prices; the effects of competition and regulation; our dependence on vendors to supply us with quality merchandise at the right time and at the right price; breaches of security or privacy

of member or business information; conditions affecting the acquisition, development, ownership or use of real estate; our capital spending; actions of vendors; our ability to attract and

retain a qualified management team and other team members; costs associated with employees (generally including health care costs), energy and certain commodities, geopolitical

conditions (including tariffs); changes in our product mix or in our revenues from gasoline sales; our failure to successfully maintain a relevant omnichannel experience for our members;

risks related to our growth strategy to open new clubs; risks related to our e-commerce business; and other important factors discussed under the caption “Risk Factors” in our final

prospectus under Rule 424(b) filed with the U.S. Securities and Exchange Commission (“SEC”) on June 28, 2018 in connection with our initial public offering, as such factors may be

updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov.

Additional factors or events that could cause our actual performance to differ from these forward-looking statements may emerge from time to time, and it is not possible for us to predict

all of them. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual financial condition, results of operations, future

performance and business may vary in material respects from the performance projected in these forward-looking statements.

Any forward-looking statement made by us in this presentation speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking

statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Disclaimer

Industry Information

Market data and industry information used throughout this presentation are based on management’s knowledge of the industry and the good faith estimates of management. We also

relied, to the extent available, upon management’s review of independent industry surveys and publications and other publicly available information prepared by a number of third party

sources. All of the market data and industry information used in this presentation involves a number of assumptions and limitations, and you are cautioned not to give undue weight to

such estimates. Although we believe that these sources are reliable, we cannot guarantee the accuracy or completeness of this information, and we have not independently verified this

information. While we believe the estimated market position, market opportunity and market size information included in this presentation are generally reliable, such information, which

is derived in part from management’s estimates and beliefs, is inherently uncertain and imprecise. Projections, assumptions and estimates of our future performance and the future

performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described above. These and

other factors could cause results to differ materially from those expressed in our estimates and beliefs and in the estimates prepared by independent parties.

Non-GAAP Financial Measures

We present Adjusted EBITDA, free cash flow, total debt to LTM adjusted EBITDA ratio, net debt to LTM adjusted EBITDA ratio and adjusted EBITDA margin to help us describe our

operating performance. Our presentation of these measures is intended as a supplemental measure of our performance that is not required by, or presented in accordance with, U.S.

generally accepted accounting principles (“GAAP”). Adjusted EBITDA, free cash flow, total debt to LTM adjusted EBITDA ratio, net debt to LTM adjusted EBITDA ratio and adjusted

EBITDA margin should not be considered as an alternative to operating income (loss), net income (loss), total debt, earnings per share or any other performance measures derived in

accordance with U.S. GAAP as measures of operating performance or operating cash flows or as measures of liquidity. Our presentation of adjusted EBITDA, free cash flow, total debt

to LTM adjusted EBITDA ratio, net debt to LTM adjusted EBITDA and adjusted EBITDA margin should not be construed to imply that our future results will be unaffected by these items.

A reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures are included in the Appendix to this presentation.

Agenda

Investment HighlightsII

Financial HighlightsIV

I Introduction

Growth StrategiesIII

Q&AV

2

IntroductionSection

I

BJ’s Wholesale Club at a Glance

5+ million Memberships

86%Membership

Renewal Rates

$534 millionFY17 Adj. EBITDA

10xAnnual Savings on

Membership Fee216 ClubsAcross 16 States

~50%EBITDA from Membership

Fee Income

$12.8 billionFY17 Total Revenue

3

Real Estate

✓ Leading positions in core Eastern U.S.

markets

✓ 3x clubs vs. next largest competitor1

Before We Look Ahead, Let’s Take a Look Back

BJ’s core has substantial advantages: New team first focused on addressing:

Value

✓ Prices in line with club competitors

✓ 25% lower prices than grocery

Fresh

✓ Large selection of fresh food and

perishables

✓ General merchandise treasure hunt

Membership

✓ Large, loyal and growing membership base

✓ Access to comprehensive member data

Low profit margins compared

to peers

Underinvestment in people,

marketing and membership

Inadequate systems and

capabilities to support growth

Pockets of unprofitable sales

1Refers to markets in CT, MA, ME, NY, NH, RI, VT, and DE.

4

We Started by Improving Discipline and Investing in Durability and Growth

Fuel for growth Strategic growth investments

Re-Created

Procurement

Process

Eliminated

Unprofitable Sales

+$300mm1

Savings from Category

Profitability Improvement

“CPI”

BJ’s Café

DVD’s

Wholesale tobacco

Jewelry

Invested $230mm2

in Systems

Re-invested

Savings in Growth

Initiatives

✓ People & culture

✓ Increased marketing

✓ Digitalization

✓ Life Time Value (“LTV”)

approach to membership

Executed a repositioning that benefits members, employees and investors

SG&A Discipline

✓ Optimize club labor

✓ Control indirect / home

office cost

✓ Reduce margin leaks

Omni-channel

Capabilities

~8,000 ratings

1Represents procurement savings during FY16 – Q3FY18.2Represents investments since 2011.

5

As a Result, Our Performance Has Improved On All Dimensions

Note: Financials as of BJ’s fiscal year ending on the Saturday closest to the last day of

January of the following calendar year. FY17 consisted of 53 weeks.1Excludes impact of gasoline.2Adj. EBITDA margin calculated as adj. EBITDA as a percentage of Net Sales. Net

Sales defined as (Total Revenue – Membership Fee Income).

3Free cash flow defined as net cash from operating activities less capital expenditures.4Includes cumulative impact of compensatory payments related to options and

management fees paid to financial sponsors of $10mm, $14mm and $86mm for FY15,

FY16 and FY17 respectively. Tax affected at federal plus state rate of 38.9%, 39.5%

and 41.2% for FY15, FY16 and FY17, respectively.

Accelerating comp growth1 Increasing renewal rates

84%

85%

86%

FY15 FY16 FY17

0.4%

1.2%

2.0% 2.0% 1.9%

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18

Strong free cash flow3 ($mm)Adj. EBITDA2 ($mm)

~$130mm increase in Adjusted EBITDA

~95 bps increase in Adjusted EBITDA margin

$406

$457

$534

3.3%

3.8%

4.3%

FY15 FY16 FY17

Acquire and Retain

Members

Expand Our Strategic

Footprint

Make Everything More

Convenient

Deliver Value to Get

Them Shopping

BJ’s growth initiatives

Cumulative free cash flow

Excludes compensatory payments

and management fees4

$ 47

$ 230 $ 302

$ 53

$ 244

$ 367

FY15 FY16 FY17

6

Section

IIInvestment Highlights

Investment Highlights

Differentiated Shopping Experience II

Large and Loyal Membership Base III

Well-Positioned and Highly Profitable Club BaseIV

I Favorable Warehouse Club Industry Dynamics

Attractive Business Model with Strong Profitability and Free Cash FlowV

New Generation Leadership TeamVI

7

Value to Consumers Driving Warehouse Club Channel Growth

$108 $113 $113

$121

$132

$141 $148

$153 $154 $157

$167

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

U.S. Warehouse Club market size The club business model

Source: Warehouse Club Intelligence Center – 2017 Warehouse Club Guide, U.S. Census data.

I II III IV V

Industry &

Model

Membership Fee Subscription Model

Comprehensive Customer Data

Treasure Hunt

Favorable Demographic Trends

Clear Value in Transparent Pricing Environment

vs. Other Channels

($ in billions)

8

BJ’s Has Significant Price Advantages Against Its Competitors

✓ Wider selection of SKUs, especially in

fresh

✓ Smaller pack sizes

✓ Accepts manufacturer coupons

✓ Smaller club format in convenient

locations

✓ Drives “treasure hunt” experience with

general merchandise

✓ Ancillary services and fuel

✓ Market leading fuel offering

✓ “Treasure hunt” experience

✓ Truly “omni” offering with BOPIC and

Instacart same day delivery

vs. Other club vs. Grocery

vs. Online groceryvs. Mass

✓ Bulk-sized SKUs offering

✓ Better fuel proposition

✓ Curated assortment

~25%Lower price

Lower priceSignificantly

lower price

Price in line

I II III IV V

Shopping

Experience

9

BJ’s Value Proposition Flywheel

✓ Price in line with club competitors

✓ 10x return on annual membership fee

✓ Compelling credit card rewards

✓ Fuel & ancillary services (tires, optical, etc.)

+5 million

memberships

Constantly reinvest

into membership value

✓ 86% renewal rates

✓ Membership fee driving spend

consolidation

✓ Provides comprehensive data on

members and IT systems to harvest it

✓ Limited SKUs support pallet

presentation, driving scale and

inventory turns

✓ Requires less labor in club

✓ Efficient distribution

✓ Low per square foot build-out costs

Earn loyalty,

stability and data

Operate efficiently

I II III IV V

Shopping

Experience

10

22

Emphasis on Fresh Drives Higher Trip Frequency

# of SKUs

Fresh SKUs

Other SKUs

Avg. annual trips per member

Wide selection of SKUs, especially in fresh Drives trips

6,250

950

4,500

7,200

Other warehouse club average

Fresh deli

2 lbs.

5 lbs. 6 ct.

4 ct.

Convenient pack size

I II III IV V

Shopping

Experience

11

$56

$66

$79

$90

$106

$118 $124

$139

$150 $159

$173 $175 $180

$191

$210

$229

$242 $243 $247

$255 $259

$276

FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Q3'18LTM

Consistent and Predictable Membership Fee Income Growth

Membership Fee Income

($ in millions)

Membership fee

increase

84 96 107 118 130 140 150 157 165 172 177 180 187 189 195 198 201 207 213 214 215 215Store

count

Membership fee

increase

Membership fee

increase

Membership fee increase

(Jan. 2018)

I II III IV V

Membership

Base

12

While We Target “Smart Saving Families”, We Also Appeal to a Wide Range of Customers

Different customer vs. other club competitors

✓ More affluent customer demographic or

focus on small businesses

✓ Products: prime steaks, jewelry,

premium alcohol

✓ Bulk purchases for small businesses

✓ Average household income: ~$75,000

✓ Dual income families

✓ Fresh food

✓ Target weekly grocery trip

Other club

competitors

I II III IV V

Membership

Base

13

$ 55

Membership fee Annual savings

How do people save at BJ’s?

We Provide Compelling Value to Our Customers and a Meaningful Return on Their Membership Fee

~10x return on

investment

Illustrative member savings

Lower grocery prices

High quality meat, produce and deli

General merchandise treasure hunt

Extensive private label

Low-priced fuel

Attractive credit card rewards

Illustrative pricing examples

~25% lower price than grocery

~30% savings

$4.49 / lb.

Grocery: $6.49 / lb.

16 pack

~30% savings

$0.77 / ct.

Grocery: $1.06 / ct.

$0.212 / gallon cheaper

vs. average competitor

1Based on GasBuddy 2016 100 U.S. Best Value Brands price survey.2Includes additional $0.10 savings per gallon when purchased using my BJ’s Perks® credit cards.

Top 10 Value Brands1

I II III IV V

Membership

Base

14

Club base overview Core Northeast markets1

1Northeast includes CT, MA, ME, NY, NH, RI, VT, and DE as of January 2018

Leading Real Estate Footprint and Market Share in Our Core Markets

3x vs. Next largest

club operator

Net new openings (2014 – 2017)

(13)

17

14

BJ’s only opened one

store in FY16 and

FY17, respectively

20

33

98

98% of clubs profitable

Store count

I II III IV V

Real Estate

15

HeadquartersDistribution Center

BJ’s Location

Rocky Hill, CT

(Perishable distribution center)

Burlington, NJ

(Distribution center)

Orlando, FL

(Perishable distribution center)

Uxbridge, MA

(Distribution center)

Elkton, MD

(Perishable distribution center)

Jacksonville, FL

(Distribution center)

Lean Cost Structure and Membership Fee Income Drives Stable Profitability

~50%

Membership

fee income

~50%

Merchandise

sales

Adjusted EBITDA

1Based on FY17 results. Adjusted for comparability. SG&A inclusive of depreciation & amortization, rent expense and pre-opening expenses. BJ’s figure excludes compensatory

payments related to options and management fees.

SG&A as % of COGS1

18%

26% 28% 29%

32%

Structural advantages vs. Grocery and Mass

Non-union labor and less labor required to operate

Limited SKUs

Pallet presentation

Fast turn inventory and efficient distribution

I II III IV V

Profitability

16

Section

III Growth Strategies

Growth Strategies

Acquire and Retain MembersI

Deliver Value to Get Them ShoppingII

Make Everything More ConvenientIII

Expand Our Strategic FootprintIV

17

New member prospecting

Higher tier penetration

Grow Easy Renewal

Membership desk

execution

We Are Pursuing Opportunities to Grow Membership Base at Every Stage of the Member Lifecycle

“Always on”

personalized

acquisition

Improve people,

process and tech

to drive

conversion

Upgrade membership

to higher tiers

Auto enroll

Switch from opt-in

to opt-out

I II III IV

Acquire & Retain

Members

Driving Comparable Club Sales by Growing Membership Base

18

Avg. Costper

Acquisition

InnerCircle

BJ's PerksPlus

BJ's PerksRewards

BJ's PerksElite

Proactive Approach to Acquire Members

I II III IV

Acquire & Retain

Members

LTV approach to member acquisition

Spend more to acquire new members Membership desk execution

$110 $110 $55Annual fee

Facebook and

social media

Data-driven targeting

Direct mail

flyers

Move best people to membership desk

Additional labor training

Refocus on higher-tier membership

Emphasize value proposition to

customers

Member life time value vs. acquisition cost

$55

® ® ® ®

19

21%

38%

FY17 FY17

1Represents the renewal rates for members with two or more years of tenure. 2Represents penetration of BJ’s Perks Plus®, BJ’s Perks Rewards® and BJ’s Perks Elite® membership programs. 3Represents Executive membership as percentage of paid members per Costco’s FY17 10K.

Inner Circle® BJ’s Perks

Rewards®

BJ’s Perks Elite®

(credit card)BJ’s Perks Plus®

(credit card)

Value-Added Membership Provides Better Retention and Additional Income for Membership Value Investment

Value-added membershipBase

I II III IV

Acquire & Retain

Members

Value-added membership programs

gaining momentum

Earn-back rates on

spend @ BJ’s--

3%

At point-of-sale

2%

At point-of-sale

5%

At point-of-sale

Savings on BJ’s

gas-- 10¢ / gallon -- 10¢ / gallon

Renewal rates1

Company

average of 86%

3

Value-added membership penetration

2

~4xCo-branded Mastercard

holders growth 2014 – 2017

20

I II III IV

Get Them

Shopping

Enabler:

Multiple Systems

Enabler:

SAP

Enabler:

SAP Promo. Mgmt. System

Enabler:

Revionics

Our Investments Have Made Our Company More Durable

Promotions

Assortment

Consumer Experience

Pricing

Comprehensive Customer Data

21

Examples to Drive Trips and Basket

Personalized digital promotionsFlexible assortment to

drive treasure huntPrivate label offerings – quality at

a better value

Facebook

Cloud-based marketing engine

Off-price, seasonal and branded apparel

Able to chase new opportunities

Add-to-Card coupons Potential new categories over time

✓ Prepared foods

✓ Pharmacy

✓ DIY / tools

✓ Outdoor /

sporting

I II III IV

Get Them

Shopping

10%

20%

FY12 YTD Q3 FY18

Private label penetration

✓ ~94% members bought a private label

item last year

✓ Grow SKUs, engage customer and

enhance clear packaging

+1000 bps

22

Bring our products to customers Showcase fresh and curated offerings

Convenience Showroom eCommerce

Engage customers with our products

Integrate online / offline experience Bring the treasure hunt online

Three Pillars of Omni-Channel Strategy to Drive Comps

(Same day delivery)

I II III IV

Make it

More Convenient

23

✓ Use smart phones to scan bar codes as they shop

✓ Adding payment

✓ Select and load digital coupons to membership card

✓ Over 54 million coupons clipped

We Are Investing to Make the Shopping Experience Easier

Mobile App w/ Add-to-Card

✓ Purchase online and pick up in club within 2 hours

✓ Available in all clubs

Shop BJ’s.com – Pick-up in Club

Instacart

✓ Same-day delivery available in all clubs with ~3,800

products

✓ Offers club pricing for members with $14.99 flat

delivery fee

I II III IV

Make it

More Convenient

Express Scan

24

BJ's has reinvented its club opening model

Ind

ex

ed

me

mb

ers

at

op

en

ing

Ind

ex

ed

ye

ar

1 r

eve

nu

e

New clubs are posting compelling results

✓ Improved club targeting analytics

✓ Increased pre-opening marketing to build awareness

✓ Targeted current and lapsed members to reengage

✓ Improved club layout and assortment

✓ Leveraged smaller club format in urban areas

Kearny, NJ and Summerville, SC

(Aug. 2016 & June 2017)

BJ’s New Club Opening Process Has Yielded Much Better Performance

FY15 new club

cohort average

~3x

Actual opening Actual opening

~2x

Median year 1 revenue Year 1 revenue

215

310+

Current Current + whitespaceopportunity

Significant whitespace within distribution network

I II III IV

Expand

Footprint

25

New club model target numbers

$35 - $40

Year 1 target Maturity target FY17Chain average

Revenue ramp up target

15-20 Club Openings Over the Next 5 Years

~$50mmIn mature sales

$1mm In working capital 1

($ in millions)

~$58

1 Represents $4mm in inventory net of $3mm in payables.2 Represents 52-week equivalent FY17 figure, calculated by dividing 53-week FY17 figure by 53 and multiplying by 52.

$4mm Build-out cost

I II III IV

~$50

Expand

Footprint

26

2

Section

IV Financial Performance

Key Metrics are Growing Again

Note: Financials as of BJ’s fiscal year ending on the Saturday closest to the last day of January of the following calendar year. FY17 consisted of 53 weeks.1 Defined as Adjusted EBITDA as % of Net Sales. Net Sales defined as (Total Revenue – Membership Fee Income).

Total revenues Adjusted EBITDA

$242 $243 $247 $255 $259

$412 $414 $406

$457

$534

FY13 FY14 FY15 FY16 FY17

Membership fee income

($ in millions)

Margin1 3.3% 3.3% 4.3%

$12.6$12.7

$12.5$12.4

$12.8

FY13 FY14 FY15 FY16 FY17

Clubs 201 213 215

Renewal

rates83% 84% 86%

($ in billions)

27

We Built a Strong Foundation for Continued Comps Expansion

Took full advantage of being private to reset revenue basisFactors affecting historical

comparable club sales

✓ Exited certain low-margin categories

✓ Replaced BJ’s Café with more profitable

Dunkin’ Donuts franchises

✓ Higher private label penetration impacted

sales, despite favorable economics

✓ Challenges in fresh business

✓ Food deflation

✓ Electronic benefit transfer benefit cuts by

the federal government

Comparable club sales excluding gasoline

Annual Quarterly

(1.0%)

(0.3%)(0.5%)

(2.3%)

(0.9%)

0.5%

(1.7%)

(3.9%)(3.6%)

(4.5%)

(0.9%)

0.4%

1.2%

2.0% 2.0% 1.9%

FY13 FY14 FY15 FY16 FY17 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18

28

We Continue to Make Progress Across Our Divisions

29

FY17 FY18

Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3

Company Comp Sales (4.5%) (0.9%) 0.4% 1.2% (0.9%) 2.0% 2.0% 1.9%

Comp Sales by Division

Edible grocery (5%) (3%) (2%) 1% (2%) 2% 2% 1%

Perishables (6%) (3%) 1% 2% (2%) 3% 1% 0%

Non-edible grocery (4%) 1% 1% 2% 0% 3% 1% 3%

General merchandise 0% 7% 3% (2%) 1% (2%) 4% 5%

Two-Year Comp Sales Stack FY18

Q1 Q2 Q3

Edible grocery (3%) (1%) (1%)

Perishables (4%) (1%) 1%

Non-edible grocery 0% 2% 4%

General merchandise (2%) 10% 8%

Total Two-Year Stack (2.5%) 1.1% 2.3%

Drivers of Target Long-Term Comparable Club Sales

Driver Impact

New member acquisition

Growth in tenured members

Merchandising and marketing initiatives

Omni-channel and B2B initiatives

Increasing private label penetration

30

Culture of Discipline Driving Investment and Profitability

Category Profitability

Improvement

(CPI)

Disciplined Productivity

Management

Margin Leaks

Repositioned as growth

story with suppliers

Utilize data to educate and

negotiate with vendors

Increasing margin

Improved cost discipline allows additional investment for growth

Improving frontline productivity

Maximize operational efficiency

Streamline private label strategy by reducing dilutive promotions

Clarified tactics profitable results

Elevated pricing decision to ensure investments are

strategically appropriate

+$300mm1

Negotiated savings to date

Reviewed once Reviewed twice Unaddressed

~$10bn COGS pool, much of which not yet

fully addressed

Cost Discipline Created a Pool of Savings to Fund Reinvestment in the Business

0%

25%

50%

75%

100%

Non-Edibles Edibles Perishables GeneralMerchandise

1Represents procurement savings during FY16 – Q3FY18.

31

($ in millions) Q3'18 Q3'17 Delta

Net sales $3,150 $3,019 4.3%

Membership fee income 71 65 10.1%

Total revenues $3,222 $3,084 4.5%

Comparable club sales

(excl. gasoline) 1.9% 0.4% +150bps

COGS $2,630 $2,523

Gross profit $592 $561 5.6%

% of total sales 18.8% 18.6% +22bps

SG&A $500 $480 4.0%

% of total revenues 15.5% 15.6% (7bps)

Adj. EBITDA $149 $141 5.3%

Adjusted EBITDA margin 4.7% 4.7% +5bps

Q3’18 Update

✓ Net sales up 4.3% due to 3.6% increase in

comparable club sales

✓ Merchandise comparable club sales continued to

expand:

✓ Fifth consecutive quarter of merchandise

comp sales gain

✓ General merchandise comps of 5% and a

8% two-year stack

✓ Non-edible groceries comps of 3%

✓ Perishable comps flat; driven by 1.5%

deflation impact

✓ Membership fee income benefitted from fee

increase in January 2018 and incremental new

members

✓ Gross margin expansion primarily due to

procurement and assortment optimization

✓ SG&A as % of total revenue flat

✓ SG&A for Q3’18 includes $2 mm of offering

costs associated with the secondary offering

and $1 mm in club asset impairment

charges

✓ Excluding one-time expenses, SG&A for

Q3’18 was $496 mm versus $474 mm in

Q3’17

32

1 2

1 Includes $2.3 mm in offering costs associated with our secondary offering and $1 million of club asset impairment charges related to a club relocated in fiscal 2018 2 Includes $4.3 mm in compensatory payments to holders of stock options made pursuant to antidilutive provisions in connection with dividends paid to shareholders and $2.0 mm in management

fees paid to our sponsors in accordance with our management services agreement, which terminated upon closing of the IPO.

Current Capital Structure and Free Cash Flow

1Defined as cash flow from operating activities minus capital expenditures.2Includes compensatory payments related to options and management fees paid to financial sponsors of $86mm in FY17 tax affected at federal plus state rate of 41.2% in FY17.3 Derived from $625mm of second lien facility and interest rate of 8.95% as of February 3, 2018, plus the savings as a result of the August 2018 repricing transactions tax affected at federal plus state tax rates of 27% in FY18.

✓ Strong balance sheet

✓ Attractive free cash flow

✓ Modest capex plans

✓ Limited working capital needs

✓ Intend to use free cash flow to de-lever

✓ Net debt leverage ratio 3.3x as of Q3FY18$73

$55

$178

$123

FY17 FCF Tax-effected pro formainterest savings

FY17 FCF pro formafor IPO

Free cash flow1

Excludes compensatory payments and management fees2

3

33

Significant Long-term Upside

Substantial

advantage

Real Estate

Fresh

Membership

ValueAcquire and Retain

Members

Deliver Value to Get

Them Shopping

Make Everything More

Convenient

Expand Our Strategic

Footprint

Proven formula to generate

growth

34

Appendix

GAAP to Non-GAAP Reconciliations

35

Annual YTD

($ in millions) FY13 FY14 FY15 FY16 FY17 Q3FY17 Q3FY18

Income (loss) from continuing operations ($10) $19 $25 $45 $52 ($16) $63

Interest expense, net $168 $154 $150 $143 $197 $150 $138

Provision (benefit) for income taxes ($10) $10 $12 $28 ($28) ($7) ($8)

Depreciation and amortization $197 $187 $177 $178 $164 $123 $122

Compensatory payments related to options $34 $2 $1 $6 $78 $78 $0

Stock-based compensation expense $0 $2 $2 $12 $9 $8 $56

Preopening expenses $7 $12 $6 $3 $3 $2 $4

Management fees $8 $8 $8 $8 $8 $6 $3

Noncash rent $12 $11 $9 $7 $5 $4 $4

Strategic consulting $0 $0 $15 $26 $30 $24 $23

Severance $2 $4 $7 $2 $9 $0 $1

Asset retirement obligations $0 $0 ($7) $0 $0 $0 $0

Offering Costs $0 $0 $0 $0 $0 $0 $3

Other adjustments $2 $3 ($1) ($2) $6 $2 $3

Adjusted EBITDA 412$ 414$ 406$ 457$ 534$ 376$ 413$

Net Sales $12,342 $12,488 $12,220 $12,095 $12,496 $9,006 $9,381

Adjusted EBITDA margin 3.3% 3.3% 3.3% 3.8% 4.3% 4.2% 4.4%

(Amounts in thousands)

(Unaudited)

As of

November 3, 2018

Total Debt 1,938,783$

Less: Cash and cash equivalents 31,502

Net Debt 1,907,281$

Twelve Months Ended

November 3, 2018

Income (loss) from continuning operations 131,453$

Interest expense, net 184,300

Benefit for income taxes (29,447)

Depreciation and amortization 163,091

Stock-based compensation expense (a) 57,437

Preopening expenses (b) 4,913

Management fees (c) 5,300

Noncash rent (d) 4,601

Strategic consulting (e) 28,483

Severance (f) 10,025

Offering costs (g) 3,143

Other adjustments (h) 7,756

Adjusted EBITDA 571,055$

Net Debt to LTM adjusted EBITDA 3.3x

a) Represents total stock-based compensation expense and includes one-time expense related to certain restricted stock and stock option awards issued in connection with our IPO.

b) Represents direct incremental costs of opening or relocating a facility that are charged to operations as incurred.

c) Represents management fees paid to our sponsors (or advisory affiliates thereof) in accordance with our management services agreement, which terminated upon closing of the IPO.

d) Consists of an adjustment to remove the non-cash portion of rent expense, which has been recorded on a straight-line basis in accordance with GAAP.

e) Represents fees paid to external consultants for strategic initiatives of limited duration.

f) Represents termination costs associated with voluntary workforce reductions that occurred in February 2018 and incremental severance expense to a former executive.

g) Represents one-time costs related to our IPO and secondary offering

h) Other non-cash items, including amortization of a deferred gain from sale lease back transactions in 2013, non-cash accretion on asset retirement obligations, obligations associated with our

post-retirement medical plan and impairment charges on a club that was relocated in 2018.

GAAP to Non-GAAP Reconciliations

Net Debt and Net Debt Leverage Ratio

(Amounts in thousands)

FY15 FY16 FY17

Net cash from operating activities $ 159,361 $ 297,428 $ 210,085

Less: Capital expenditures 112,363 114,756 137,466

Free cash flow $ 46,998 $ 182,672 $ 72,619

Free Cash Flow

36